Xiangtan Electric's controlling shareholder extends equity pledge

Xiangtan Electric Manufacturing (SSE:600416) announced that its controlling shareholder, Xiangtan Electric Group, has extended the pledge of 35,000,000 shares of the company to the Industrial and Commercial Bank of China YueTang Branch, representing 2.64% of the total share capital. This extension brings the total pledged shares held by Xiangtan Electric Group to 177,000,000, accounting for 97.8% of its holdings in Xiangtan Electric Manufacturing and 13.35% of the total share capital. Including consistent parties, the total number of shares pledged is 177,000,000 which represents 43.5% of total holdings of 406,919,250 shares. The funds raised from this pledge will be used to replenish working capital. The pledge is not for purposes of major asset restructuring or earnings compensation, and the company states that the pledge risk is controllable.